Credit union plan will end moneylending scourge
The nationwide roll-out of a micro-lending scheme provided through credit unions is the first serious attempt by the State to take on the scourge of moneylending.
For too long this State has taken a far too liberal approach to moneylenders. The Central Bank licenses them, imposes a code of conduct, but adopts a light-touch approach to their regulation.
According to the Central Bank's register of moneylenders, one operator is permitted to charge an annualised interest rate of 287.72pc, once collection charges are included. Rates as high as these are nothing short of scandalous. That such high interest rates are legal is shocking.